Category Archives for "Income Tax"

IRS citations pertaining to acquisition and disposition of property

As a small business owner you need to consider the following IRS reading list pertaining to the acquisition and disposition of property:

IRS Pub 544 – Sales and Other Dispositions of Assets
IRS Pub 547 – Casualties, Disasters, and Thefts (Business and Nonbusiness)
IRS Pub 551 – Basis of Assets
IRS Pub 552 – Recordkeeping for Individuals

You may want to reference instructions for IRS Form 4797 – Sales of Business Property, IRS Form 8594 – Asset Acquisition Statement Under Section 1060, IRS Form 8824 – Like-Kind Exchanges, and IRS Form 8949 – Sales and Other Dispositions of Property.  Also consider barter exchange transactions.


Tax Tips online courtesy of

SOHO Tax Tips regarding online resources

SOHO Tax Tips regarding online resources

Tax tips are now available online using your iPhone or Droid. Thanks to an article entitled “Using Social Media To Get Tax Information” on, here is a list of online resources available from both the Internal Revenue Service website and social media portals that can be useful not just during tax season but throughout the calendar year. The article at lists resources that are accessible from either your desktop computer or mobile phone.  In fact, IRS2Go is a mobile app for both Apple and Android users. It provides personal tax refund information and other tax tips and tax-related information.

YouTube Tax Tips –

IRS Videos – A YouTube resource that provides IRS information in English and other languages.

American Sign Language Videos – A similar online resource that provides information in American Sign Language.

Multilingual Videos – Another similar online resource that provides information in a variety of foreign languages.

Twitter Tax Tips –

@IRSnews – information for the public, press, and practitioners

@IRStaxpros – information for professional tax preparers

@IRSenEspanol – news and information in Spanish

@Recruitment IRS – IRS Human Capital Office

@YourVoiceatIRS – a taxpayer advocate service

Audio Tax Tips –

The IRS also provides tax tips in audio files for podcasts. Information regarding this special resource is available from the IRS Newsroom.

This information was originally provided on July 29, 2011 from the Article Collections at


Tax Tips for US Taxpayers Living Abroad

Tax Tips for US Taxpayers living abroad

Are you a US Taxpayer living abroad?

Tax tips for US taxpayers living abroad are always useful. The Archive website is no longer updated but still provides important recommendations for both US citizens who live abroad and resident aliens. In summary, regardless of what kind of financial information you file (for example, income tax returns, estate returns, or gift tax returns), the filing rules are the same whether you live in the continental US or abroad. The rules also include paying any estimated taxes.

What are important filing deadlines?

Personal income tax returns (namely, IRS Form 1040, 1040a, or 1040EZ) are generally due in the middle of the fourth month (April 15) that follows the end of a calendar year.

Income tax filing rules are basically the same for US Taxpayers living abroad.

For those who are living overseas or are serving in the military outside the US and Puerto Rico (but not a combat zone) , there is an automatic two month filing extension.  It is important to remember that this two-month extension or the six month filing extension (IRS Form 4868, Application for Automatic Extension of Time to File US Individual Tax Return) is for the filing of a return; any taxes that are owed the government must be paid by the original filing deadline.

Any filing extension for US Taxpayers living abroad apply only to filing the return; pay any tax balance due by the original return deadline.

Your failure to address payment of any tax balance due by the original return deadline leaves you subject to paying interest as well as possible penalties.   Your tax payments are considered paid when the IRS receives the funds rather than when you postmark your your balance due, a separate voucher, or estimated tax payment.

What about difference in Exchange Rates?

All income reported on US federal or state income tax returns are stated in US dollars (USD) rounded up (or down) to the nearest whole dollar. While a taxpayer can use a daily currency exchange rate for very specific financial transactions, taxpayers reporting income should reference the yearly average exchange rate. If you find yourself filing income tax returns for prior years and are unable to determine an annual average, consider reseaching the exchange rate as of December 31 of the tax year you are reporting.  You can find further information about exchange rates by searching for “exchange rates” in the Search feature available on the official IRS website,

Do you have a taxpayer identification number ?

You need a taxpayer identification number to file a personal income tax return. Most US taxpayers have a Social Security number (SSN). You also need identification, typically a SSN, for any people who are claimed as joint filer or dependent on a US income tax return. If a spouse or dependent does not have a SSN, you need to provide an Individual Taxpayer Identification Number (ITIN).  You need original or certified documentation proving identify, age, and citizenship when applying for an SSN at a local US Social Security office or, if abroad, at a US consulate.  The IRS issues ITINs used exclusively for filing financial information with the federal government. Use IRS Form W-7, Application for IRS Individual Taxpayer Identification Number,  when applying for an ITIN for a spouse or dependent.

More help for US taxpayers living abroad?

On the official IRS website,, click the Individuals tab on the left side of the main menu.  In the submenu, click International Taxpayers.  You will open a webpage with many IRS references to various topics that assist the US taxpayer living abroad.  If you are living abroad, consider seeking assistance from a tax professional before you file your income tax return.